Chicago soyoil and palm oil both fall on the back of weak export data
The price of Malaysian palm oils futures fell on Tuesday due to weak export data, and a weakness in the Chicago soyoil contracts. However, Dalian vegetable oil prices were stronger, which limited losses.
The benchmark palm-oil contract for delivery in November on the Bursa Derivatives Exchange fell 6 ringgit or 0.16% to $3,715 ringgit (US$849.14) per metric ton.
The export data caused crude palm oil futures to trade lower during the afternoon session. "After digesting the data, the market fell back to its trading range between 3,700-3.750 ringgit, waiting for further leads," said a Kuala Lumpur based trader.
Data from cargo surveyor shows that exports of Malaysian products containing palm oil between Aug. 1-20 fell between 16.7% to 18.4% compared to the same period in August last year.
Intertek Testing Services
AmSpec Agri showed.
Dalian's palm oil contract, which is the most active contract, gained 1.43%. Chicago Board of Trade soyoil prices dipped 0.58%.
Palm oil monitors the price changes of other oils in order to compete with them on the global vegetable oil market.
The contract is less attractive to foreign currency holders because the ringgit, which is the currency of the contract, has strengthened by 0.07% compared to the U.S. Dollar, reaching its highest level since mid-February, 2023.
Technical analyst Wang Tao stated that palm oil could test resistance at 3,764 Ringgit per metric tonne. A break above this level would confirm a target price of 3,809 Ringgit as well as an inverted head and shoulders.
(source: Reuters)
